Government Allocates 343.2 Billion Won to T-Mef Affected Companies... 40.1 Billion Won Refunded to Consumers

Announcement of progress at the Economic Ministers' Meeting on the 12th
Consideration of initiating collective dispute resolution for travel, accommodation, and airline tickets

The government has disbursed a total of 343.2 billion KRW in financial support to e-commerce companies with unsettled payments, including TMON, WEMAKEPRICE (Timep), Interpark Shopping, and AK Mall.

Photo by Asia Economy DB

On the 12th, the government held an Economic Ministers' Meeting chaired by Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok, where it announced the progress of the "Comprehensive Measures for Small Business Owners and Self-Employed and Response Plan for the WEMAKEPRICE and TMON Incident."

As of the 9th, financial support for e-commerce companies with unsettled payments totaled 343.2 billion KRW. Of this, emergency management stabilization funds amounted to 99.4 billion KRW (833 cases), financial support from the Korea Credit Guarantee Fund and Industrial Bank of Korea was 60.2 billion KRW (178 cases), and secondary interest subsidy support in the tourism sector was 3 billion KRW (1 case). Local governments provided emergency management stabilization funds of 16.4 billion KRW (68 cases), while loan maturity extensions for general loans amounted to 59.4 billion KRW (219 cases) and advance payment loans totaled 104.8 billion KRW (1,161 cases).

Regarding consumer damages related to WEMAKEPRICE and TMON, refunds totaling 40.1 billion KRW for general products and gift certificates were completed on the 9th through credit card companies and simple payment service providers. The initiation of collective dispute mediation is under review for 9,028 cases (25.6 billion KRW) involving travel, accommodation, and airline tickets, and 12,977 cases (24.2 billion KRW) involving gift certificates.

Since the 19th of last month, the government has actively responded to wage arrears at Qoo10 affiliates and has been operating an employment situation task force to provide employment support. Through liquidation guidance, as of the 6th, companies with wage arrears have completed payment of 1.9 billion KRW for July and August wage arrears. On the 10th, the Ministry of Employment and Labor paid 250 million KRW in advance payments to 38 victims of wage arrears through the Wage Claim Guarantee Fund. Additionally, two on-site briefing sessions were held to provide guidance on job transition and reemployment for retirees.

The government also explained the progress of the "Comprehensive Measures for Small Business Owners and Self-Employed" announced in July. Regarding the three financial support measures?conversion guarantees from regional credit guarantee funds, low-interest refinancing loans, and repayment period extensions?approximately 43,000 applications totaling 241.3 billion KRW had been supported as of the 6th. Applications submitted last month are currently under review and are expected to be actively disbursed starting this month.

The New Start Fund, which helps small business owners and the self-employed to recover, will expand the scope of debt adjustment targets and extend the application period starting today. The business operation period for eligibility was previously from April 2020 to November last year but has been extended to June of this year. The application period, previously until October 2025, has been changed to December 2026. Furthermore, the government is promoting expanded linkage to other programs beyond the National Employment Support System and the Hope Return Package program.